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Simon-Nicolas-Henri Linguets Eighteenth-Century Perspectives on the Intimate
Relationship between a Free Market Economy, the Rise of the Big Government, and the
Creation of a Police State
Social and Education History, vol. 4, nm. 1, febrero, 2015, pp. 49-84
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Mircea Platon1
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Date of publication: February 23 , 2015
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to Creative Commons Attribution License (CC-BY).
HSE Social and Education History Vol. 4 No. 1 Febraury 2015 pp.
49-84
Simon-Nicolas-Henri Linguets
Eighteenth-Century
Perspectives on the Intimate
Relationship between a Free
Market Economy, the Rise of
the Big Government, and the
Creation of a Police State
Mircea Platon
University of Toronto
Abstract
As a lawyer, economist and journalist of European stature, Linguet argued that the
political and economic ideas advocated by the economic philosophes or the
physiocrats, were bound to lead to a dangerous revolution undertaken without a
clear idea of the true principles of a new and better society. Linguet's opposition to
the physiocrats and his support for the guilds stemmed from a radical populism that
prompted him to accuse the philosophes and the physiocrats of talking about
humanity while neglecting the sufferings of real human beings. Linguet warned
during the 1770s and 1780s that the systematic laissez-faire theories of the
philosophes and Turgot's suppression of the guilds would dissolve the traditional
ties of society and lead to a conflict between a mass of unemployed people and an
oppressive police state. Linguet argued that only a politics of subsistence, welfare,
and preventative nurture would prevent the coming revolution. Linguet's clashes
with the physiocrats would prompt him to develop a theory of underconsumption as
well as a historicist understanding of political economy and of the legal system that
would have a deep influence upon the history of humanist economy.
Keywords: economic liberalism, enlightenment, physiocrats, authoritarianism
Simon-Nicolas-Henri Linguet,
Perspectivas en el XVIII sobre
la ntima Relacin entre
Economa de Libre Mercado, el
aumento del "Gran
Gobierno", y la Creacin de un
Estado Policial
Mircea Platon
University of Toronto
Abstract
Como abogado, economista y periodista de talla europea, Linguet argument que las
ideas polticas y econmicas defendidas por los "filosofos economistas", o los
fisicratas, conducan a una revolucin peligrosa emprendida sin una idea clara de
los verdaderos principios de una nueva y mejor sociedad. La oposicin de Linguet a
los fisicratas y su apoyo a los gremios, derivaron a un populismo radical que lo
llev a acusar a los filsofos y los fisicratas de hablar de la humanidad,
descuidando los sufrimientos reales de los seres humanos. Linguet advirti, durante
la dcada de 1770-1780 que las teoras sistemticas del laissez-faire de los
philosophes y la supresin por Turgot de los gremios disolveran los tradicionales
lazos de la sociedad y dara lugar a un conflicto entre una masa de desempleados y
un estado policial opresivo. Linguet argument que slo una poltica de la
subsistencia, bienestar y crianza preventiva impediran la prxima revolucin. Los
enfrentamientos de Linguet con los fisicratas le incitarn a desarrollar una teora de
subconsumo, as como una comprensin historicista de la economa poltica y del
sistema legal que tendra una profunda influencia en la historia de la economa
humanista.
Keywords: liberalism econmico, ilustracin, fiscratas, autoritasrismo
O
ne of the ideas embraced, especially after the end of the Cold War,
by both historians of political economy and political pundits is that,
if only left to itself, the free market would be able to provide us
with both a small government and a cornucopia of high quality goods. In
this narrative, regulation breeds big government, and vice versa, and
results in the manufacturing of low quality goods. The smaller the
government, the greater the freedom of the market, and therefore the higher
the quantity and quality of the goods on the shelves of the supermarkets. The
supporters of free market economy have never been able to offer a
convincing explanation of the fact that their very enthusiastic cheers for
global capitalism have always been accompanied by sobs for the growth of
the welfare/nanny state, or big government. Neither could neoliberals
offer convincing explanations of the fact that eugenic ideas, aiming to
lighten the burden of the state by diminishing the number of those deemed
socially, racially, intellectually or physically inferior or unfit, internal
migration control, and racial segregation have always pleasingly haunted the
liberal imagination, from La Beaumelle (Platon, 2011) in the eighteenth
century, to certain neoconservatives who translated the plain, old-fashioned
racism into fiscal conservatism during the Cold War (Glaser & Possony,
1979).
Beginning with the last decades of the eighteenth-century, the supporters of
the free market economy have treated political economy as ontologically
sealed against any historical contamination, as an ecosystem functioning
according to its own laws. Today, neoliberals discuss the growth of the state
with the moral outrage reserved to an ecological catastrophe, as the result of
a greasy political spill into the pure ocean of economics. The resulting story
is one of heroic neoliberal divers struggling and failing, for conjunctural
reasons (the Cold War, the liberal media/academia, Greenpeace), to stop
this spilling caused for contingent, self-serving reasons, by liberal (that is,
leftist in American parlance) politicians who trade freedom for votes.
Neoliberals do not seem to take into account any possible structural
connection between the rise of the free market and the rise of big
government, and therefore interpret the growth of the welfare state simply
as an indication of the economic and political malaise fostered by a political
52 Mirce Platon Liberalism and Police States
against Old Regime despotism. The papers announced that during that
during his social calls in Paris Linguet used a calling card depicting a lion
keeping in his claws a pike with a Phrygian bonnet on top of it (Le
Martirologe national, 1790, pp. 110-111, 219-222, 262). Indeed, even
German revolutionary publications compared him with an untamable lion
(von Clauer, 1791, p. 32). However, by June 1791, Linguet retired to the
countryside, near Ville dAvray, to Marnes, where he dedicated himself to
agriculture, to local politics, and to his Annales. In June 1793 he was
arrested by Order of the Committee of General Security under the accusation
of conspiring with the king against the nation (Le courier de l'galit, 5
October, 1793, p. 22). He was executed on 27 June 1794 as a partisan and
apostle of despotism. French revolutionary publications would start
lambasting him as an opportunist, as a pen for hire, as a hubristic mercenary
interested only in inflating his ego as well as his pockets (Rive, 1793, pp.
194-95; Delacroix, 1794, pp. 315-16).
Despite these post-mortem attacks, Linguet appears in retrospect a
thinker whose ideological fecundity served to buttress a remarkably stable
social, political, cultural and economic framework. Disbarred, twice thrown
in prison under the Old Regime, a defender of chevalier de La Barre, an
enemy of the philosophes and of the physiocrats, and, as it turned out, not
quite a friend of Robespierre either, a defender of the poor and of the much
maligned Asian despotism, Linguet cast, in the century of Lights, a long
and troublesome shadow. Considered a brutal realist, Linguet was
definitely an anti-nominalist, refusing to get caught in any ideological
cobwebs. Linguets involvement in some of the most resounding human
rights trials of the eighteenth century France, such as the trials of La Barre
and of the duke dAiguillon, the publication of his trial briefs, and his
political journalism - a Journal de politique et de littrature (21 issues
printed in Bruxelles [Paris] between 25 October 1774 and 25 July 1776), and
the Annales politiques, civiques, et littraires (19 volumes published in
London, Bruxelles and Paris between 1777 and 1792) - marked him as one
of the most thorough critics of the Old Regime. As one of the first political
journalists, ready to make appeals to the public opinion, Linguet crafted
elements of the future revolutionary discourse, and criticized the feudalism
of the Old Regime while proposing various fiscal, legal, economic, and
HSE Social and Education History, 4(1) 57
social reforms (Censer, 1994, pp. 179-181; Popkin, 1987). His embrace of
empiricism, his defense of revolutionary causes such as that of the Belgians
revolting against Austrian rule in 1789 or of the Haitians rising against their
French colonial masters in 1791, his preoccupation with political economy
and the situation of the poor and the oppressed, situated him firmly in the
Enlightenment camp. But if he was no defender of the status quo, Linguet
was no member of a party of Enlightenment either. Linguet questioned the
juridical philosophy of the Enlightenment, the political institutions built
upon that legal philosophy, the political economy corresponding to these
legal precepts and political institutions, and finally the proponents of the new
theologico-political consensus. As such, he argued against natural law
philosophy, against a political regime based upon the multiplication,
separation, and balance of powers such as that advocated by Montesquieu
and by his followers, against the economic liberalism of the physiocrats, and
finally against the philosophes.
The physiocrats and the philosophes, such as Diderot, were not always on
the same page, some philosophes having little taste for the benevolent
despotism advocated by the physiocrats, others being more supportive of
industry than the physiocrats, others being too bourgeois to dream of a rural
kingdom, too civic republican to engage in apologies of luxury, or too
opposed to the esprit de systme to enjoy the physiocrats Malebranchian-
Confucian esoteric system, which Galiani ridiculed as economystification
(Weulersse, 1910a, 2: 626-682; 1950, pp. 138-247; 1959, pp. 206-230; Fox
Genovese, 1976, pp. 59-62; Eltis, 1995; Riskin, 2003, pp. 42-73). Despite
these fault lines, and despite protestations to the contrary on the part of the
physiocrats, Linguet labeled the physiocrats as the philosophes
conomistes, tying them firmly to the philosophes. According to Linguet,
both groups had the characteristics of a sect (a term later used by Adam
Smith also), or a cabal. Linguet felt that the philosophes received his
deeply probing writings with a mild, involuntary sneeze and a temporary
agitation that would become, in time, a long-lasting delirium (un dlire
durable) (Linguet, 1771, 1:2). This was, Linguet argued, the fanatical
reaction of a sect trying to control and shape the public discourse in order to
impose its own orthodoxy instead of merely taking part in a public debate.
Linguet pointed out that he was not dispassionately contradicted, but literally
58 Mirce Platon Liberalism and Police States
embodiment of conformism, and that as such they would have been in the
first ranks of the League: There will always be people enslaved by the
opinions of their times, their country, and their society. A man who today
plays the freethinker and the philosopher would, for the same reason, have
been only a fanatic during the time of the League (Rousseau, 2002, p. 46).
Linguet saluted the 1758 suppression of the Encyclopdie, but warned that
this act, far from stopping the advance of the philosophic spirit, merely
prompted it to assume another identity, that of physiocracy.
Robert Shackleton (1977) argued that the suppression of the
Encyclopdie in 1758 marked the birth of a real party of the philosophes
(Garrioch, 2004). While historians have looked for various other similar
watersheds in the decades going from the 1730s to the 1750s, one of them
being the 1752 affaire de Prades (Burson, 2010), the importance that
Linguet attached to physiocracy as a second, practical, incarnation of an
already existing philosophic sect deserves consideration because it
indicates that the crucial developments of the Enlightenment were not
already over by the middle of the eighteenth century, as Jonathan Israel
(2002, pp. 6-7) advanced from a perspective concerned with democratic
equalitarianism, but neglecting economic ideas and changes. With the
emergence of the physiocrats, a version of philosophie went from a
theoretical to a practical phase, from being a more or less oppositional
intellectual discourse to being accepted as part of a program of government.
According to Linguet, the suppression of the Encyclopdie merely ushered
in a new incarnation of the philosophical sect. Abandoning its
encyclopedic envelope, the sect became the buzzing insect that, since
then, all of us have called economics or economic science (Linguet, 1771,
1:13). The metaphysical speculations that preoccupied the first incarnation
of the esprit philosophique were abandoned for something more dangerous
for the people. As philosophes, the sect could be contained and its effects
circumscribed to elite salons, whereas the conomistes had arrived in a
position to change France by direct political and economic intervention.
Linguet was convinced that the philosophes harmed people by multiplying
the number of empty intellectual signs, thus making social commerce
impossible. On the other hand, the conomistes altered the very conditions of
life by fostering economic monopolies, oligarchies, and by an excessive
60 Mirce Platon Liberalism and Police States
If Linguet argued throughout his whole life against philosophie, in both its
cultural and economic forms, and if the main thrust of his argument
concerned both the philosophes and the physiocrats, Linguets concern for
the culture of politics stayed with him longer than his preoccupation with the
politics of culture. Whereas Linguets first writings were dominated by
literary concerns, in the 1770s and 1780s Linguet attacked mainly the
politico-economic embodiment of philosophie that was Physiocracy.
For the Physiocrats, the ultimate reality was that of nature and of
natural law. The role of the state was iconic: it participated in that reality and
mediated mans participation in that reality too. Hence, the state had not
merely an existence of fact, but one of right: it was, so to say, deified
according to this physiocratic Platonic deism. People were a component of
HSE Social and Education History, 4(1) 61
the state, and their happiness was an element of the perfect, natural,
physiocratic state. The physiocrats recognized, as Warren J. Samuels noted,
no rights independent of state law, and even property was less sacred
than expedient and useful in maintaining the ideal physiocratic State
(Samuels, 1992, pp. 12-27, 28-46). The physiocratic drives to streamline the
state for future progress were not accompanied by any sustained or
systematic efforts to propose any way of coping with individual misfortune
and poverty and did not take into account the historicity of human existence
(Root, 1987, p. 111). Although, as Intendant of Limoges, Turgot created the
ateliers de charit, a sort of public works system offering a temporary job in
building roads which played an important role in helping the free trade in
the physiocratic scheme of things - to women, children and unskilled men
unable to win their daily bread otherwise, this program could not be
extended to the rest of France for lack of adequate financial resources. The
destitute population of France stood at around a fifth of the total population
and the physiocratic reforms aiming to increase agricultural productivity by
partitioning and enclosing common lands and woods left many families
without a livelihood, severed from their traditional ties and safety networks
(Hufton, 1974, pp. 1, 183-88; McStay Adams, 1990, pp, 240-43).
For Linguet, on the contrary, the starting point was the welfare of the
people since, for Linguet, the natural law was not an expression of the
universal order, but of social realities, of human needs and passions. For
Linguet, the states legitimacy did not rest on its putative natural or
supernatural (Christian) foundations, but on its social utility. The most
important prerogative of the ruler was that of preserving the dignity of
man and of not allowing the debasement of the People, a concept which,
according to Linguet, designated the real Sovereign (Linguet, 1770, 50).
Linguet argued that since it was impossible to go back to the primordial and
truly rightful situation preceding the appearance, by theft, of private
property, the state existed as a means to a social end: to ensure public peace
and to protect the right to life of its citizens. The state did not have any
mission to harmonize citizens with a rational, transcendent, natural order.
Linguet feared that English-style economic and political liberalism would
result in the rise of an aristocratic monarchy, of an oligarchic system in
which people would have no recourse to justice, and the rich and powerful
62 Mirce Platon Liberalism and Police States
would go unpunished (Linguet, 1770, p. 74). Writing in his Thorie des loix
civiles, Linguet argued that economic liberalism would multiply the
bureaucratic-administrative networks and the abuses it was supposed to stifle
and would stifle instead precisely the freedom it was supposed to nurture
(Linguet, 1770, pp. 72-73). Putting in practice the idea of the balance of
powers required the growth of the administrative apparatus. This
multiplication of the branches of the state would lead to the real despotism
of that horrible administration which is death, the putrefaction of a state.
Yet, Linguets attack on bureaucracy did not signal him as an enemy of what
we call today big government. According to Linguet, more than the
concentration of power in the hands of a single person, citizens should fear
the inflationary dispersal of such power, which would result in the total
neglect of the laws and to executive and judicial incapacity. Linguet did not
deplore the regulating state, but the dissolution of the state authority, the
incapacity of the state to uphold its laws and to enforce its standards due to
its bureaucratic proliferation, to political factionalism and to economic
oligarchies. In fact, for Linguet, despotism was not the same as a strong
government, but similar to a ghostly government, to an absence of
government, or a minimal state: Despotism is so little like a government,
that right from the moment when despotism begins any form of government
ceases to exist (Linguet, 1770, pp. 45-46). Linguet argued that the balance
of powers theory would prevent those in power from doing any good, but
would enable them to harm the citizens. Checks and balances liberalism,
argued Linguet, made the people a prisoner of the institutions. The
multiplication of institutions benefited only the rich, since the poor would
never have enough money or time to pursue justice through the required
institutional channels (Linguet, 1764b, p. 9). Linguet acknowledged the
existence of only two socio-political categories: the rulers, and the subjects,
that is those who ruled and those who had to obey because they had the
weaker hand. Multiplying the branches of the government did nothing to
weaken the elites monopoly on power. On the contrary, argued Linguet, the
power elites would gain control of the newly-created state institutions and
use them to increase their pressure on people by bribing certain social
segments and by marginalizing others (Linguet, 1774, pp.1-44-86).
HSE Social and Education History, 4(1) 63
The physiocrats affirmed that there was a certain natural order based on
eternal and unchanging laws, as imprescriptible as those of physics (Laski,
1936, pp. 207-8). In order to prosper, any society had to follow these rules
(Du Pont de Nemours, 1910, p. 7). The reforms proposed by the physiocrats
were not a result of temporary economic necessity, but a rigid deduction
from certain unassailable and immutable principles, newly discovered by
their master Quesnay (Einaudi, 1938, p. 10). Quesnays system was
expounded, developed and popularized by his followers, Pierre Samurel Du
Pont de Nemours, the marquis de Mirabeau, Nicolas Baudeau (1776), and
Pierre-Paul Le Mercier de la Rivire (1767; see also May, 1975, pp. 58-94),
who advanced the idea that agriculture was the only productive endeavor.
Only agriculture brought a net profit, that is a rent over and above the
costs of production and the entrepreneurs profits (Einaudi, 1938, p. 11). In
agriculture, the physiocrats thought they discovered a source of wealth that
has the privilege of multiplying infinitely (Weulersse, 1959, p. 14) thus
breaking with the zero sum economic theory of classical civic
republicanism. This also meant that if the first generation of physiocrats (the
early Quesnay, abb Gabriel-Franois Coyer) were interested in small-scale
agriculture, the second generation of physiocrats (lead by a reconstructed
Quesnay, Mirabeau, Baudeau, Dupont de Nemours, Le Mercier de La
Rivire) would insist upon large farms, which they saw as more profitable
since by cutting costs the big farmers would create more of that net
product, or capital needed to sustain the whole economic body. This, as
Linguet shrewdly pointed out, indicated that the physiocrats were interested
only in the produit net, not in the well-being of the people.
Ontologically impermeable to history, and therefore to the sufferings of a
humanity reduced to the status of a cog in the wheel of a naturalized, greater
scheme of economic things, physiocracy, in Linguets opinion, betrayed its
promise, even while fulfilling its premises. According to Linguet, despite its
promise of freedom and prosperity, physiocracy would bring only
servitude, poverty, and death, because physiocracy sought to increase the
net profit by cutting costs in order to increase productivity. Since one of
the costs targeted for elimination was that of human labor, physiocracy
reduced human beings to the status of mere cheap and therefore expendable
tools. According to the physiocrats, the net profit could be increased by
66 Mirce Platon Liberalism and Police States
employed more people and paid in nature, avoiding the monetarization of the
economy and the bankruptcies accompanying the development of a
monetary economy (Linguet, 1771, 2:210-211). Big farms were, instead,
more lucrative for their owner, but infinitely more damaging to that corner
of the country were they are located, and to the state in general because they
destroyed the local economy by replacing the stable peasant-tenants with
migrant workers: thus, both the profit of the owner and the salary of the
temporary workers is not reinvested locally, but in the city or in other
provinces. In the end, the wealth of the big farm owner is spurious because it
is obtained by ruining the countryside by investing less in it and in the
people inhabiting it. It was a wealth that robbed the people of their dignity,
of their means of subsistence and in the end of their freedom. Political
freedom, the political rights of a human being possessing nothing, being
reduced to selling its own personal labor on a market swelling with cheap
available workforce, was nothing. The physiocrats claimed that by
liberalizing the labor market they were making work available to everyone
(Sheperd, 1903; Maldidier, & Robin, 1973; Groenewegen, 2002. pp. 314-
30). But the physiocratic policy of opening up the labor market drove down
the price of labor and made it hard for workers to subsist by their own work.
If the physiocrats offered a man the right to emancipate himself by selling
his own labor on the marketplace, Linguet maintained that politics, even
parliamentarian politics, as in England, was a game of force, and that only an
independent, self-sustaining man could stand for his freedoms, while a hired
hand was worse than a slave. Freedom, like property, existed for Linguet
first as a fact and only afterwards as a right. It was, in a way, a non-
nominalist, human scale, prescriptive liberty. For Linguet, small property
was the only bulwark against the grasping hand of both the state and the big
private monopolies. While Linguet was not a follower of Montesquieus
political theory and disparaged intermediary bodies such as parlements,
which he saw not as bulwarks against despotism but as a way of trickling
down despotism and corruption, his politics of simplicity required the
existence of the economic intermediary bodies known as guilds, or
jurandes.
When, in January 1776, Turgot promulgated his famous six edicts, one of
which dissolved the craft guilds, Linguet jumped to their defense.
68 Mirce Platon Liberalism and Police States
point of view, since they articulated and policed society. Far from being
inimical to freedom, guilds secured the existence of that order without which
freedom was impossible: they were the regiments without which society
would crumble in disarray and people would desert their duties (Linguet,
1776, p.3). Considering that their existence was not a hindrance, but a
resource of the state, Linguet recommended the reform of the guilds, not
their abolition. Linguet hinted that instead of squeezing them financially, for
taxes and corporate loans to the monarchy, the state should consider the
much more important political ways in which the guilds could serve the
monarchy. Linguet would revisit this idea in 1788-1789, in the context of the
pre-revolutionary crisis, when, to the dismay of the international banking
creditors of France (Clavire, 1788), he urged the monarchy to declare
bankruptcy and thus to refuse the politics of austerity imposed by the
bankers, and called for an anti-aristocratic alliance between the monarch and
the Third Estate (Van Kley, 1996, pp. 282-88, 317-21).
The suppression of the guilds was, for Linguet, merely another step in the
direction of physiocratic despotism, the despotism of the rich robbing the
people of their livelihoods under the guise of liberalizing the right to work.
Indeed, Turgot and the physiocrats saw the dissolution of the guilds as an
essential step toward creating an urban space for the rural proletarians
displaced from villages by the enclosure of the commons and the creation of
big farms, which most of the physiocrats considered more profitable than the
subsistence agriculture. If, refused a livelihood in the villages, as agricultural
workers, the poor would also have been unable to enter a trade in the cities,
the government might have had on its hands a huge mass of discontented
people, in the already difficult context of revolts caused by the rising price of
bread due to bad crops and the partial deregulation of grain trade (the
intendants subtly manipulated the grain market, supplying it with provisions
bought with state money in order to lower the prices). Turgots attack on the
guilds had therefore political motivations as well as ideological overtones.
Linguet noted four ministerial reasons supporting the abolition of the
guilds: first, the expansion of industry; second, the diminution of the price of
work and of manufactured goods; third, the reduction of what we call now
red tape, of bureaucratic regulation of business; and fourth, the
suppression of wasteful and vindictive trials between guilds such as the
HSE Social and Education History, 4(1) 71
boom and bust capitalist economic cycle by not allowing craftsmen give in
to what we now call bubbles, and to what Linguet called this imaginary
bigness (cette grandeur chimrique) to which they were suddenly
catapulted by good times (Linguet, 1776, p. 9). Linguet argued that
producers fixated on competition for a corner of the market and for profits
would lose sight of the buyer, who would end up being forced to choose
between shoddy goods produced at the lowest possible cost. Unbridled
competition would be bad for manufacturers, too, since they would stand at
the mercy of the middle-man, of the distributors whose interest was to buy
cheaply and to sell dearly. Faced with competition, the producer would try to
meet the orders of the distributors as fast as he could, thus sacrificing quality
for the sake of productivity: He will cheat the merchant, who, at his turn,
will cheat the buyers (Linguet, 1776, pp. 7-8).
Therefore, liberal economic rationality, far from simplifying the
economic life, would just result in flooding the market with a wave of fake
artisans, shoddy goods, and dishonest merchants. Rushing to replace the old,
honest masters craftsmen, would be parasitical masters, eager to
manufacture or to invest in manufacturing anything that sold well, and thus
ruining the old masters dedicated to the perfection of their craft. (Linguet,
1776, p. 17). This deluge of fake goods would force the state to control it by
creating agencies dedicated to quality controls. Removing therefore the
quality controls at the guild level would force the state to assume tasks
previously accomplished by the guilds. Whenever a certain craftsman would
have to obtain a license in order to practice his craft, this license would have
to be provided either by his guild or by state authorities. The alternative
would be to dispense with professional licenses altogether in order to attain
that simplicit de rgie much praised by Turgot and by the physiocrats.
But if the state deemed that professional licenses would still be necessary,
then shifting them from the guild to state administration would not result in
any simplification of economic life, or reduction of state bureaucracy.
Liberal economics and big government, argued Linguet, are inherently
correlated, since liberal economics required tearing up the whole social
fabric based on guild autonomy. The state would then have to spin the web
of a police state as the price of destroying those very useful resources of the
state that were the guilds, already invested with traditional liberties, and
74 Mirce Platon Liberalism and Police States
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